ECON 2001.01 Lecture Notes - Lecture 3: Demand Curve, Takers, Complementary Good

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ceruleantiger348

10 Sep 2018

School

Ohio State University

Department

Economics

Course

ECON 2001.01

Professor

Ida Mirzaie

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ECON 2001.01 Lecture Notes - Lecture 2: Ceteris Paribus, Sunk Costs, Investment Goods

ECON 2001.01 Lecture Notes - Lecture 3: Demand Curve, Takers, Complementary Good

ECON 2001.01 Lecture 4: 4. Elasticity

Document Summary

A market refers to the buyers and sellers who trade a particular good or service. In a market there are many interactions between buyers and sellers which make the market work. Markets can exist in any place wherever and whenever an exchange takes place. Price is determined through the interactions of these buyers and sellers. Any place where factors of production are bought and sold. Any place where finished goods and services are bought and sold. In order for a transaction to occur there must always be a buyer and a seller behind it. The seller is on the supply side of the market. The buyer is on the demand side of the market. The amount of a particular good or service that buyers are willing and able to purchase at a given price. The lower the price, the higher the quantity demanded, all other things equal. Displays the quantities demanded at various prices on a chart.

Related Questions

13. One of the limitations of Five Forces is that:

a. These tools reduce producer surplus

b. For one firm to increase profit, it takes it from other participants in the industry

c. Does not provide a firm with sustainable competitve advantage

d. both b & c.

15. All these are characterisctics of a monopoly except,

a. There is one seller of the product

b. Has few substitutes

c. Controls a large share of the market

d. Controls a small share of the market

22. Industries with high barriers to entry

a. Pushes profits to normal returns

b. increases the likelihood of firms entering the industry

c. help firms sustain profits

d. increases the number of competitors

14. How does Ebay differ from an economist's view of a perfect competitve market?

a. Ebay has few buyers whereas perfect competitve industry assumes many buyers

b. Ebay has few sellers whereas perfect competitve industry assumes many sellers

c. There is limited information in ebay whereas perfect competitive industry assumes full information for both buyers and sellers

d. There is no difference between these two markets

26. Low cost strategies are usually found in industries where

a. Products are not particularly differentiated

b. Price competion tends to be fierce

c. Both a and b

d. None of the above

Cigarettes - Price Elasticity of demand = - 0.67

A. Cigarettes

B. Alcohol

C. Sodas

D. None of the above

2. The demand for insulin will be ______________ than the demand for a Caribbean cruise in general

a. More elastic

b. More inelastic

c. Less elastic

d. Less inelastic

1. In the formula for Bayes theorem if the w-probability is greater than the zero than the a-probably is less than the b-probability

true or false

2. posted offer markets with at least two sellers will generate prices that remain a little above prices from double auction markets

3. running the price clock in a dutch auction once will produce higher observed prices compared to running the clock twice

4. if losers pay winners in a sealed bid auction then they will eventually be willing to bid up to 50 percent more than the winning prize

5. with only one seller in a posted offer market prices willl tend to move upward toward the monopoly price

6. adjusting the concentration of sweet versus sour enabled rats to have a large negative income effect for sour water

7. a sales tax on large luxury boats will impact the buyers more than the sellers of these boats causing the buyers to pay more than half the cost of the sales tax

8. if each seller knew all of the sellers unit costs and the buyers knew all of the buyers unit values a buyer or seller would be able to calculate the competitive equilibrium price before an experiment began

9. suppose your income taxes rise only on incomes over 250,000 annualkly then your after tax income will be unafftected if your annual income is 100,000

those first nine are true and false

these are short answer

1. explain the logical steps to explain how negative price effects can reult from the negative income effects

2.what happens to observed prices inposted offer and double auction markets as the number of sellers drops to 2. what happens when these two markets sellers drops to 1

3. in a looser pay winner auction. why do bidders change their minds toward wanting to bid well above the value of the price even though they refused to do so at the beginning. how does this experiment explain why george bush and citizens changed their minds about preemptive attack on iraq. how do these experiments explain why england wanted to tax trade in the american colonies which led to rebellion and the formation of the us.

if you could help with any of these thatd be great

viridianweasel299

Suppose the market for widgets can be described by the following equations:

Demand: P = 14 1.00Q
Supply: P = 1.00Q + 6,

Where P is the price in dollars per unit and Q is the quantity in thousands of units. What are the equilibrium price and quantity? The equilibrium quantity is ______ units and the equilibrium price is $______.

Suppose the government imposes a tax of $1 per unit to reduce widget consumption and raise government revenues. What will be the new equilibrium quantity? What price will the buyer pay? What amount will the seller receive?

The new equilibrium quantity will be __________.
The price paid by buyers will be $__________.
The amount kept by sellers will be $__________.

brownalligator960

ECON 2001.01 Lecture Notes - Lecture 3: Demand Curve, Takers, Complementary Good

ECON 2001.01 Lecture Notes - Lecture 2: Ceteris Paribus, Sunk Costs, Investment Goods

ECON 2001.01 Lecture Notes - Lecture 3: Demand Curve, Takers, Complementary Good

ECON 2001.01 Lecture 4: 4. Elasticity

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